Framework aims to boost cross-border electricity trade, supporting regional renewable energy projects.
Singapore and Malaysia are collaborating to establish a Renewable Energy Certificate (REC) framework for cross-border electricity trade. This initiative is set to accelerate investment in regional renewable energy projects and enhance bilateral and regional green energy partnerships.
Singapore and Malaysia are building on their green economy collaboration by formulating a Renewable Energy Certificate (REC) framework. The initiative follows the December 2024 commencement of renewable electricity imports under a deal between Sembcorp Power (Singapore) and Tenaga Nasional Berhad (TNB) (Malaysia).
The proposed REC framework will ensure credible recognition of renewable electricity traded across borders. It is expected to stimulate demand for such projects, driving investments to enhance the long-term sustainability of renewable energy initiatives.
Since December 13, 2024, TNB has been supplying 50 MW of renewable electricity to Singapore via Sembcorp Power, under the ENEGEM pilot project. To date, 28,000 megawatt-hours of electricity have been traded, highlighting the potential for further expansion.
Since December 13, 2024, TNB has been supplying 50 MW of renewable electricity to Singapore via Sembcorp Power, under the ENEGEM pilot project. To date, 28,000 megawatt-hours of electricity have been traded, highlighting the potential for further expansion.
Singapore Power and TNB are conducting a feasibility study to expand interconnector capacity and infrastructure. This development will support large-scale bilateral and regional power trade, maximising the use of existing resources.
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The REC framework complements broader green economy efforts, including MOUs on carbon capture, storage, and carbon credit cooperation. These agreements aim to promote sustainable development, share best practices, and facilitate industry-led research.
The collaboration underscores efforts by both nations to deepen their partnership in renewable energy. By leveraging their geographical and infrastructural advantages, Singapore and Malaysia are well-positioned to lead in the regional green energy transition.
This framework signals enhanced renewable energy opportunities and strengthens regional sustainability initiatives. The joint approach promises long-term economic and environmental benefits, fostering deeper ties between the two nations.
Singapore and Malaysia are developing a Renewable Energy Certificate framework to facilitate cross-border electricity trade. This initiative aligns with green economy goals and follows renewable energy imports under the ENEGEM pilot project. The collaboration aims to expand interconnector capacity and foster regional sustainability.
Sources: Asian Power, The Business Times (2025)
Keywords: Singapore, Renewable Energy, REC Framework
